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woodplc.com
Environment and Infrastructure SolutionsOctober 2018
Robin Watson – Chief Executive, WoodAnn Massey – CEO, E&ISJoe Sczurko – S&D President, E&IS
Wood’s differentiated capability…
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…across a broad range of industrial markets
…with full service capability across
the asset life cycle.
on a global scale…
that is technology enabled…
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E&IS: A key strategic driver of the AFW acquisition
Government Infrastructure
Balanced across opex and capex spending
Additional capability & broader end market
exposure
Asset light, people consultancy
Low volatility/high predictability
Short term: NAM growth Long term: International expansion
Strong and experienced management team
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• BS Geology, Tennessee Technological University• MBA, Tennessee Technological University• 35 years progressive experience in E&I industry as Project/Program Manager, Client Account Manager,
Senior P&L Manager, CEO/President of MACTEC (acquired firm), S&D President• Registered Professional Geologist
Joe Sczurko | President Strategy & Development E&IS
• Sc.B. Civil Engineering, Brown University• M.S. Environmental Engineering, Carnegie Mellon University• MBA University of Southern Maine• 32 years progressive experience in E&I industry as Project/Program Manager, Client Account Manager,
Senior P&L Manager, and S&D President• Registered Professional Engineer
Ann Massey | CEO E&IS
Supporting customers through a facility’s life cycle
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Road/rail design
Construction inspections, quality control and quality assurance
Geotechnical foundation design
Wastewater treatment
Flood risk studies
Data managementand mapping
Soil and groundwatercontamination
Air, land, water impactassessment and permits
• Professional consultancy of engineers, scientists and project managers
• Broad offering - plan, design and engineer infrastructure and tackle complex environmental challenges
• Reduce environmental liabilities and maximise efficiency across the life cycle of customer’s assets
• Flexible delivery model - predominantly “time-and-materials”
E&IS : who we are and what we do
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75%
25%
Our services
Engineering/consultancyProject management/support
65%
35%
Our delivery model
ReimbursableFixed price
35%
18%15%
8%
8%
7%6%3%
Revenue* by Sector
E&IS at a glance
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32%
25%
18%
12%
8%5%
Revenue* by Service Line
27%
22%20%
17%
14%
Top 20 Customers
IndustrialGovernment agenciesPower/EnergyOil & gasTransport
80%
13%7%
Revenue* by Geography
US & CanadaEuropeRoW
Facility Operations
Environmental Remediation
Public Infrastructure
Geotechnical & Materials
Environmental Sciences
Permitting & Compliance Services
GovernmentIndustrialTransportPower/energyWaterOil & gasMiningPharma
* Revenue refers to 2017 Total Revenue
Historic financial performance
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• Reported revenues reflect flexibility and diverse sector focus
• Reported margins impacted by performance on inherited fixed price US Government projects
• Underlying historic margins >7% on average
• Sustainable margin performance at upper end of peer range and Wood business units
• Anticipate strong earnings growth for E&IS in 2018; margin c7%
1,2431,252
1,279
c1,300
1,2001,2201,2401,2601,2801,3001,320
2015 2016 2017 2018
$m
Revenue $m
84
40
72
c90
0
20
40
60
80
100
2015 2016 2017 2018
$m
EBITA $m
6.8% 3.2% 5.6% c7%
55%29%
12%4%
Order book by revenue type
Order Book • Secured work equates to c.1yr of revenues• c95% reimbursable/ low risk fixed price• Average job c$200k • Reflects transactional, flexible, short cycle,
lower risk business
Pipeline• > $7bn identified opportunity pipeline• Supported by significant long term
framework agreements
Visibility extends beyond firm order book
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ReimbursableSmall fixed price (consulting/engineering)Lump sum <$100mLegacy fixed price US government contracts
Order Book at 30 June 2018
$1.3bnRepeat business
c.90%
Growth market : “GDP+”
$40bn+ US environmental [source: Engineering News Record]
Major competitors:
• North American E&C (AECOM, Jacobs, SNC Lavalin)
• Specialist E&I(Arcadis, Turner & Townsend, Stantec)
Top 10 market position >200 competitors [source: Engineering News Record]
Drivers:
• Environmental legislation
• Government agency spending
• Industrial spending/economic growth
Well positioned in fragmented growth market of scale
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Our differentiation
11 Environment & Infrastructure worldwide office locations
Consistent delivery across multiple projects and locations
Global/local, cross-sector flexible model
Deep national/local regulatory knowledge and agency relationships
>30 year customer
relationships
175locations
c90% repeat
business
Our service lines
Environmental Remediation:Extinguishing contamination liabilities by restoring and redeveloping properties. Includes decommissioning services for retired assets and facilities.
Environmental Sciences: Evaluating natural resources and mitigating/monitoring environmental impacts
Permitting & Compliance:Monitoring, managing, and maintaining regulatory compliance and license to operate
Public Infrastructure: Studies, design, and construction support for roads, rail, ports and airports, water/waste management
Geotechnical & Material:Studies of underground conditions for dams, levees, infrastructure, facilities, and associated materials testing
Facility Operations: Design, project/construction management, and operations support for both new and operating facilities.
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Our enduring blue chip customer base
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Facility operations
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Developing a world-class hydroelectric dam
824 megawatt dam reducing greenhouse emissions
Engineering and constructinga state-of-the-art biotechnology facility in Germany
8 storey building supporting production of pharmaceutical ingredients
Designing cost-efficient industrial wastewater reuse systems
93%recovery rate achieved
McCain FoodsIndustrial Water Treatment Plant, India
NalcorChurchill Falls, Canada
TEVABiotech Facility, Germany
Environmental remediation
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Removing PFAS from groundwater
1stof its kind pump-and-treat system in the US
Partnering with the local community to perform remediation of waste oil refining residuals in Africa
$3M saved with innovative on-site testing techniques
Decommissioning and remediating one of the largest marine terminals in the US
4,300cubic yards of soil removed and 13 tank farms retired
US Air ForceGroundwater Treatment System, United States
BPEnvironmental Remediation, Zambia
BP Terminal Decommissioning and Remediation, United States
Public infrastructure
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Expanding a US interstate to include first flex lanes and SmartRoad technology
25miles of lane added
35bridges rehabilitated
Upgrading two port terminals into one fully automated and sustainable terminal
50%reduction in air pollution and doubled container handling capacity
Increasing public transit networks in Ontario
69 million commuters using network annually
Illinois TollwayRoadway widening, United States
Port of Long BeachPort improvements, United States
MetrolinxToronto commuter rail system improvements, Canada
Geotechnical and materials
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Assessing quality of geo-structural foundation in Peru
150 meters dam raised to an elevation of 4,700 meters above sea level
Restoring a US levee system to 100-year flood protection levels
86 milesof levee and floodwalls rehabilitated
Assuring structural integrity for one of the world’s most impressive stadiums
40,000 tons of structural steel inspected
ICONMercedes-Benz Stadium, United States
ChinalcoToromocho Mine, Peru
SW Illinois Flood Management DistrictLevee Improvements, United States
Environmental sciences and permitting & compliance
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Balancing supply and demand of water resources for a major water company in England and Wales
3 million people provided with drinking water and wastewater services for the next 25 years
Providing met-ocean monitoring support for operations safety
80+ deep sea drilling operations supported across the world
Supporting new runway development at one of the world’s busiest airports
740,000flight per year capacity
Multiple O&GOn-shore/off-shore Canada, United States
Heathrow AirportRunway 3 Expansion
Welsh WaterWater Resource Management Plan, United Kingdom
AS EAAA Detailed design, procurement, construction management, commissioning/ qualification services
Revenue synergies
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E&ISClient relationship management, consulting & preliminary design, engineering support
Biotech Facility
E&ISEnvironmental permitting & assessment
AS AmericasFull-service engineering, design
E&ISClient relationship management, mine water treatment consulting & design
AS AmericasCivil construction
Water treatment system for former mine
Engineering design for onshore pipeline
+ + +
Markets Position / outlook Rating
Government• Good opportunities in environmental remediation• Increasing emphasis on facility condition assessments & asset management• Increasing spend in defense infrastructure design
Industrial • Strong, mandated environmental remediation spend• Environmental regulations drive continual, diversified needs and wide project mix
Transport/water• Growth in Canada and UK, steady in US• Increased demand for light rail transit systems and infrastructure construction inspection• Storm water management and flood resiliency gaining added funding
Power/Energy• Geographic limitations• Large, long duration projects from coal plant and commercial nuclear station closures• Renewables growth in certain markets driving permitting, studies, geotech services
Oil & gas• Challenging conditions in large-scale environmental remediation and decommissioning projects• Midstream permitting and compliance• Downstream industrial water treatment opportunities
Mining• Up-turn in growth cycle; sector faces heavy environmental regulation and scrutiny• Environmental needs for existing mines, mine expansions and new mines• Synergy opportunities with mineral processing in STS
Pharma• Trend toward biotech and personalised medicines will shift facility types• Well positioned for opportunities in central Europe, • Opportunities to leverage capital projects capabilities in Asset Solutions
Near term market outlook
20 Growth Static Decrease
• High quality, low risk consultancy model
• Differentiated by consistency of delivery
• Leading market position
• Low volatility & strong pipeline visibility
• Long standing blue chip customer relationships
• Positive near term outlook
Summary and Q&A
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